Public private partnerships

Target groups

The Programme for Corporate Initiatives is targeted at Danish enterprises and their local business partners, where enterprises must have the necessary resources to implement a project in collaboration with Danida and other partners. The Training Programme for Social Responsibility is targeted at both organisations and enterprises. Enterprises already engaged in, for example, the Private Sector Development Programme may also apply for support.

Support measures and funding

Danida can help with developing projects, fi nding business partners and providing information about the target area. Danida can also help with arranging meetings and concluding contracts. Besides advisory services, Danida also awards fi nancial grants up to 50-60% of the total budget. Grants are given towards study visits, preliminary studies and the implementation of the projects themselves. Enterprises for their part must contribute 40-50% of the costs. The contribution of enterprises may cover, for example, the time spent by staff on the project.

Countries

Support is given to projects implemented in South Africa and Danida programme countries: Bangladesh, Benin, Bhutan, Bolivia, Burkina Faso, Egypt, Ghana, Kenya, Mozambique, Nepal, Nicaragua, Tanzania, Uganda, Vietnam and Zambia. Projects may also be established in countries with a GNI per capita of max. USD 2,428 (2004/05), where Danida has local knowledge, for example in China, India, Indonesia and the Philippines.

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Do you have a good idea for a Public Private Partnership project? Would you like to know about possibilities, conditions and application procedures? Then contact the Department for Business Cooperation & Technical Assistance (Kontoret for Erhvervsinstrumenter i Udviklingsbistand). Tel. +45 3392 0255, E-mail: ppp@um.dk, http://www.danidappp.um.dk

Social profile, network and innovation In Public Private Partnerships, each partner uses their respective competencies and resources to achieve a common goal that none of the partners could have achieved on their own – to the benefi t of all. Developing countries receive increased and better quality assistance, Danida gains a helping hand with the development assistance work, and enterprises are able to minimise social problems at the workplace, build valuable networks, develop new concepts and services, and last but not least strengthen their social profi le in the market. Public Private Partnership projects may also involve the participation of local authorities as well as local and Danish organisations, such as trade organisations, human rights organisations and environmental organisations.

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Enterprises can make a difference

Working environment, workers’ rights and HIV/AIDS are just some of the well-known challenges facing partnerships between enterprises from industrialised countries and enterprises from developing countries. Both in relation to ensuring smooth day-to-day operations. And in relation to competing successfully in a market which increasingly lays down requirements regarding the conditions under which products and services are produced and delivered. At the same time, there are a number of development issues that confront both developing countries and the international community; issues that enterprises with their unique competencies can do something about, in a way that benefi ts both the local community and their own business. Collaboration between enterprises from donor countries and enterprises from developing countries can lead to the creation of new and better jobs, new products and services, as well as higher standards of education, working life, environmental protection and good governance. The active involvement of private enterprises in development cooperation activities in other words makes a greater and more signifi cant contribution to poverty reduction and sustainable development than governmental donors can achieve on their own. The Danish Government, therefore, has launched two new programmes for Public Private Partnerships within development cooperation: Programme for Corporate Initiatives and Training Programme for Social Responsibility.

Programme for Corporate
Initiatives: Global Compact provides the framework
The Programme for Corporate Initiatives supports activities implemented in developing countries in collaboration with Danish enterprises and aimed at promoting better working and living conditions for the local population. Danish enterprises and their local business partners are invited to launch projects that can raise local labour and living standards and at the same time contribute to solving specifi c problems faced by enterprises, such as sickness absence due to AIDS. The framework for the programme is the UN’s 10 principles for corporate citizenship: Global Compact (http://www.unglobalcompact.org). Support may also be given to projects within health and education.

Training Programme for Social Responsibility:
Broader-based projects The Training Programme for Social Responsibility supports broaderbased projects, where private organisations and several enterprises join forces to promote corporate social responsibility in developing countries. This could entail, for example, courses on environmental protection, workers’ rights or other areas within Global Compact. It could also involve projects that develop tools for enterprises in developing countries and their Danish cooperation partners. A concrete example is a partnership between the Danish NGO, Save the Children, Save the Children Sweden/Denmark in Bangladesh, the Danish Federation of Small and Medium-sized Enterprises and six Danish clothing fi rms and their local cooperation partners; a partnership which develops ways of tackling child labour in the textile and clothing industry in Bangladesh.

Examples of projects:

• Workers’ rights education
• Elimination of child labour and forced labour
• Human rights education and training
• HIV/AIDS education and prevention
• Environmental protection projects
• Anti-corruption code of conduct
• Introduction of ethical guidelines
• Health programmes

Cases: Programme for Corporate Initiatives AIDS information via mobile phone The majority of new incidences of HIV in Kenya are found among young people in the towns and cities. Acknowledgement of this has led to the establishment of a Public Private Partnership, aimed at giving Kenyan youth more and better information about HIV/AIDS via mobile phone. The means is interactive voice response, WAP and SMS technology. The project is the brainchild of the Danish enterprise, Inmobia, which supplies mobile portals. Other partners include the Kenyan telecom company, Celtel, and the National Aids Control Council (NACC). Inmobia develops the concept and technology, Celtel delivers the services, the NACC supplies the technical information about HIV/AIDS, and Danida provides the fi nancial grants and sparring to the project. – The purpose of the project is fi rst and foremost to halt the spread of HIV among Kenya’s youth. But seen from a business perspective, we are also convinced that the project can generate valuable goodwill and strengthen our profi le as a socially responsible player in the African market, says sales director, Michael Juhl, http://www.inmobia.com From principle to practice The Danish enterprise, Kjaer Group A/S, wishes to implement the UN Global Compact principles in subsidiaries and business partners in Mozambique, Uganda and Sierra Leone that are engaged in the business of selling and servicing cars. This has led the enterprise to launch a project designed to translate the principles into practice. As a fi rst step along this path, 23 employees have attended a course in Denmark, where items such as human rights, environmental protection and anti-corruption were on the agenda. – Motorcare Uganda seeks to promote a more responsible and straight business mentality in our homecountry within the framework of the UN Global Compact. A business mentality where companies contribute to the community rather than focus solely on their own personal interest. In the short run, this approach might be very costly as our customers still do not evaluate on a company’s social responsibility but only on old industrial standards as price, product and delivery time, yet in the long run, I trust we do the right thing. Being part of an international group like Kjaer Group with high focus on the UN Global Compact principles makes me and my colleagues very proud, says Joseph Ssemuwemba, Sales Manager, Motorcare Uganda, http://www.kjaergroup.com